2005 – industry’s; hopes and fears.(motor operators)

The Working Time Directive looms large for UK operators; driver ability, messy regulations and greedy parking authorities also cause concern in our straw poll.

Andrew Spencer, MD of pallet network UPN, says: "When the Working Time Directive is in place in March, I think we will see a last-minute scramble of companies wanting to join networks. "I think the market has reached its optimum and we won't see any huge growth. Prices need to harden – the rate-cutting in the sector is ridiculous. "Our main priority next year is to improve our portfolio of services for members by introducing barcode scanning, PoD scanning and central billing. "In 2005, London will be the area to watch, with the big boys beginning to flex their muscles down there," Spencer says. It's not just customers that worries parcels giant TNT Express, where operations director Nigel Barton says: "I hope the congestion charge will not be expanded into Chelsea and Kensington and I'd like to see real progress on the London parking fines issue with a 30% downturn in fines for TNT." Barton says TNT's priorities will be dealing with the ramifications of the implementation of the Working Time Directive which becomes law in March. "We are hoping that a positive interpretation of the periods of availability principle will give us greater flexibility in the rostering of our drivers with the benefits of reducing our costs and enabling drivers to maintain their levels of income," he says. "We believe that the introduction of the new digital tachograph is a positive development which will help manage our drivers' hours and improve road safety but we fear that the implementation could become a government debacle if it runs into technical difficulties. We must ensure we avoid anything like the horrendous problems that occured in Germany on the Maut when new technology failed abysmally." Richard Turner, chief executive of the FTA says: "Digital tachographs and revised drivers' hours' rules are fears for next year. "We are not satisfied with the legislation in its current form and hope a common-sense approach is applied. I also fear an increase in congestion and the unreliability of the road network. Turner worries that companies will not be prepared for the WTD. "I think companies at the margin will struggle and scramble for additional staff, warehousing and equipment. There are rumours of wacky wages for drivers. However we hope it is only companies at the margin and that mainstream firms will realise that the legislation can be managed. "I also worry what will happen to fuel prices – but the industry has learnt how to manage the issue. I think we will see wide swings in fuel prices in 2005." A spokeswoman for Exel says: "Customer service is our highest priority and will be at the heart of our strategy in 2005. Last year saw the successful integration of Tibbett & Britten and in 2005 Exel will build on this and continue to meet customers' needs with innovative solutions that bring together the best of its people, processes and network. "Entry into emerging markets remains key especially given the expansion of the European Union." Nigel Parkes, MD of Pallet-Track, says: "I hope the pallet sector continues to develop. I do not believe the market is saturated and we are predicting a 50-60% growth in our volumes in 2005. "I don't think the networks will be inundated with companies wanting to join networks when the Working Time Directive is introduced. Most are either prepared to deal with the legislation, already in networks or collaborating in some other way." Richard Eldred, chairman of The Pallet Network, says: "As far as the pallet sector generally is concerned, the phenomenal growth experienced in the early part of the year was undoubtedly readjusted towards the last quarter of 2004 due to a weakening in consumer confidence brought about by a slowdown in the housing market. However, we do not see this having a major impact in the coming year. "We believe that issues such as the Working Time Directive will provide a further boost although its effect will not be quite as bad as some observers initially feared. "In bottom line terms the pallet industry is still extremely buoyant and we anticipate a further year of substantial growth." Ian Pickford, managing director at Nightspeed Secure Worldwide Express, says: "We hope 2005 will see continued profit growth and a buoyant economy needing lots of parcel movements. "We hope local authorities will relax current unworkable parking restrictions for parcel companies, realising that deliveries are the life blood of retail sales and not just a source of revenue! "We fear and worry about competitors chasing parcel volumes at unrealistic rates." David Steven, MD of Caithness-based D. Steven & Son, says: "We hope to carry on the same. Our fears for 2005 centre around the introduction of the WTD and fuel prices but we are hopeful that we can find a way of dealing with them."